Huawei Y6 hits Korea's budget smartphone market
LG Uplus models promote Huawei’s budget Y6 smartphone is launched at the telecom company’s office in Yongsan, central Seoul, on Dec. 15. The carrier has rolled out the Chinese handset exclusively in the domestic market. / Courtesy of LG Uplus
By Yoon Sung-won
Huawei, the world’s third-largest smartphone maker, is raising the profile of Chinese handsets here after the successful launch of its latest budget model.
The expanding presence of the Chinese company may lead to fiercer competition in the domestic budget smartphone market, as the nation’s leading handset makers -- Samsung Electronics and LG Electronics -- strive to boost their competitiveness in this sector.
According to the telecom industry, more than 5,000 units of Huawei’s Y6 were sold between Dec. 16 and 23 in Korea after the Chinese maker launched the low-priced model exclusively through LG Uplus. Daily sales, which stood at 300 units on the launch day, have risen to 700 as of Wednesday.
Expectations are that daily sales will continue to increase because of expanding market demand during the Christmas holiday and the year-end season.
“The popularity of the Y6 hints at new market opportunities for Chinese smartphones here, considering that previously the sales of X3, which was the first Huawei smartphone launched in Korea, have failed to meet expectations,” an industry source said.
When Huawei introduced the budget handset here, it was highlighted as the cheapest available in the domestic market, with a 154,000 won ($131.57) factory price.
The Y6 has a five-inch high-definition display, 1GB memory and a 2,200 mAh detachable battery. It can also be used as an Internet phone and provide radio without consuming data.
LG Uplus, which has a partnership with the Chinese company for its LTE network equipment, has offered about 150,000 won subsidies for subscribers even when they choose the cheapest data package plan, which costs less than 40,000 won a month.
Huawei has been working hard to wipe out negative views of Chinese handsets in the Korean market.
The company has expanded after-sales support for its products here this year by increasing the number of service centers to 51 nationwide.
The Y6’s popularity here is also comparable with that of SK Telecom’s exclusive budget smartphone Luna, which marked daily sales of 2,000 when it was rolled out in September.
“The popularity of budget smartphones in the Korean market has continued to increase as a more reasonable consumption trend penetrates,” said Oliver Wu, Huawei’s device business head in the eastern Asian region. “The Y6 has maximum efficiency with essential functions and it will meet Korean customers’ demand for a substantial product.”